Alphabet is doubling its capital expenditure to a staggering $180 billion in 2026 — earnings suggest that the company's AI investments may be paying off

Alphabet plans to double its capital expenditure to $185 billion in 2026, surprising analysts and causing a 3% stock drop. The company's heavy investment in AI seems to be paying off, with significant growth in its cloud computing business and revenue reaching $114 billion. Google's Gemini AI platform has seen monthly user numbers reach 750 million, positioning it as a strong competitor in the AI market. With a "full stack approach" to AI, Google has various avenues to monetize its AI investments, including integrating Gemini into existing services and advertising systems. Despite facing a $240 billion cloud computing backlog, Google aims to double its AI serving capacity every six months to meet demand.